Old Dominion Freight Line (NASDAQ:ODFL) reported third-quarter 2026 revenue growth of 13.1% and a 28.9% increase in diluted earnings per share, as improving demand, pricing gains and operating leverage supported profitability.
Revenue totaled $1.59 billion for the quarter, while diluted earnings per share rose to $1.65. The company’s operating ratio improved 280 basis points from the prior year to 71.5%, a measure that indicates operating expenses as a percentage of revenue.
President and Chief Executive Officer Marty Freeman said the company continued to benefit from execution of its long-term strategy, including its focus on service quality and account-level profitability. Old Dominion recorded on-time service of 99% and a cargo claims ratio of 0.1% during the quarter, according to Freeman.
Freeman also noted that Mastio & Company named Old Dominion the top national less-than-truckload provider for the 17th consecutive year. The company finished first in 24 of the 28 service and value categories measured in Mastio’s survey of shippers and logistics professionals.
Revenue Per Hundredweight Drives Growth
Chief Financial Officer Adam Satterfield said the revenue increase was primarily driven by a 13.3% rise in less-than-truckload revenue per hundredweight. Although LTL tons per day declined 0.1% for the full third quarter, September tonnage per day increased 1.6% from a year earlier.
Sequentially, third-quarter revenue per day increased 2.4% from the second quarter. LTL tons per day rose 1.2%, while shipments per day increased 2.4%.
For October, with several workdays still remaining at the time of the call, Satterfield said revenue per day was up about 22% from October 2025. That performance included a 1.6% increase in LTL tons per day. He said revenue per hundredweight including fuel was tracking at roughly 20% higher year over year, while the increase excluding fuel was between 5.5% and 6%.
Old Dominion expects fourth-quarter revenue of $1.54 billion to $1.58 billion, which Satterfield said would be above normal seasonal patterns. The company’s general rate increase took effect Oct. 1, compared with Nov. 1 last year, contributing to the October comparison.
Satterfield said weight per shipment increased about 3% in October from the prior-year period. He characterized the continuing gains in weight per shipment as a positive demand indicator, while also citing stable customer demand and positive industrial economic readings.
Fourth-Quarter Margin Outlook
For the fourth quarter, Satterfield said Old Dominion typically experiences a sequential operating-ratio increase of 200 to 250 basis points, excluding the impact of its annual actuarial analysis. Based on October trends, he said the company was targeting an operating ratio of around 73.5%, plus or minus 20 basis points.
He said higher fuel costs and broader inflationary pressures are expected to create cost headwinds. The company expects its fourth-quarter effective tax rate to be 24.8%.
Salaries, wages and benefits improved as a percentage of revenue in the third quarter, but benefit costs remained elevated on a per-employee basis. Satterfield said fringe benefits represented 42.8% of salaries and wages during the quarter, compared with 39.7% a year earlier. Health and dental costs were the principal drivers, creating about a full percentage point operating-ratio headwind, he said.
The company’s average headcount declined 4% year over year during the quarter, compared with a 2% decrease in shipments per day. Old Dominion also implemented wage increases of between 3% and 3.5%, while employees worked more hours on average as demand improved.
Capacity and Capital Deployment
Old Dominion said it maintained more than 35% spare capacity in its real estate network and has sufficient tractor, trailer and labor capacity to support additional volume. Satterfield said the company has selectively reduced its fleet after building equipment capacity during the freight downturn, but does not believe it has cut too deeply.
The company had slightly more than 20,000 full-time employees, with headcount remaining broadly steady through 2026. Satterfield said Old Dominion trains most of its drivers internally through company driving schools and has not experienced major hiring challenges. Freeman added that the company’s driver turnover rate is below 8%.
Cash flow from operations was $469.5 million in the third quarter and $1.1 billion through the first nine months of 2026. Capital expenditures were $67.1 million in the quarter and $206.7 million year to date.
- Third-quarter share repurchases totaled $160.9 million.
- Year-to-date share repurchases totaled $400.6 million.
- Third-quarter cash dividends totaled $60.0 million.
- Year-to-date cash dividends totaled $180.7 million.
Looking ahead to 2027, Satterfield said capital spending could remain below Old Dominion’s historical range of 10% to 15% of revenue, depending on its annual planning process, fleet replacement needs and real estate opportunities.
Management said it continues to see opportunities to gain market share, citing its service performance, network capacity and customer discussions around contract business. Freeman said some larger customers are pursuing two-year rate agreements in anticipation of a potential economic inflection, though the contracts generally do not include volume commitments.
About Old Dominion Freight Line (NASDAQ:ODFL)
Old Dominion Freight Line, Inc is a transportation company specializing in less-than-truckload (LTL) freight services. It transports shipments that do not require a full truck, serving business customers across a range of industries with regional, interregional and national freight transportation.
The company’s services include pickup and delivery, expedited transportation, container drayage and supply-chain solutions. Old Dominion also provides shipment tracking and other technology-enabled tools designed to support freight visibility and customer logistics management.
Founded in 1934 by Earl Congdon, Old Dominion Freight Line is headquartered in Thomasville, North Carolina.
-logo-1200x675.jpg){kind=logo}
